Pinecroft Company manufactures one product that requires 4 hours of machining di
ID: 2466269 • Letter: P
Question
Pinecroft Company manufactures one product that requires 4 hours of machining direct labor and 3 hours of assembly direct labor. The standard labor rate is $20.00 per direct labor hour in the Machining Department and $16.00 per direct labor hour in the Assembly Department. The product has forecasted sales of 3,000 units in July. The estimated finished goods inventory at July 1 is 300 units and the desired ending inventory at July 31 is 400 units. (1) Prepare a production budget for the month of July. (2) Prepare a direct labor budget for the month of July.
Explanation / Answer
(1) production budget for the month of July.
Sale in unit 3000 units
add: Budgeted ending inventory on 31 july 400 units
less:budgeted Beginning inventory on 1 July 300 units
Budgeted production units 3100 units